ALTEX INDUSTRIES INC
Key Highlights
- ALTEX operates as a holding company with non-working interests in oil and gas properties, relying on third-party operators.
- Oil and gas production remained stable from 2024 to 2025 but decreased compared to 2023 levels.
- Average oil prices received dropped significantly in 2025, while gas prices increased from 2024 but remained below 2023 levels.
- The company reported $0.00 in production costs, consistent with its non-working interest model.
- No dividends were paid in the last two fiscal years, but the company executed a share buyback in September 2025.
Financial Analysis
ALTEX INDUSTRIES INC Annual Report - How They Did This Year
Hey everyone, let's break down how ALTEX INDUSTRIES INC (ALTX) performed in its fiscal year ending September 30, 2025!
What Does ALTEX INDUSTRIES INC Do?
ALTEX is a holding company, which means it primarily owns other companies. In this case, its main business is through its subsidiary, Altex Oil Corporation (AOC). AOC invests in onshore oil and gas properties. ALTEX doesn't actually operate these oil and gas wells themselves. Instead, they own interests in properties that are operated by other companies. This means they rely on those operators for information and day-to-day management. The holding company itself has only one full-time employee.
Production and Reserves: A Look at the Numbers
Oil and Gas Reserves: As of September 30, 2025, ALTEX reported estimated reserves of 2,400 barrels of proved, developed oil from their 4.4% interest in the Glo Field in Wyoming. All their interests are "non-working," meaning they don't directly manage the operations.
Yearly Production: Here's how much oil and gas they produced over the past three years:
Oil Production:
- 2025: 300 barrels
- 2024: 300 barrels
- 2023: 400 barrels
- Insight: Oil production remained stable from 2024 to 2025 but was down by 100 barrels (a 25% decrease) compared to 2023.
Gas Production:
- 2025: 400 Mcf (thousand cubic feet)
- 2024: 400 Mcf
- 2023: 500 Mcf
- Insight: Gas production held steady from 2024 to 2025 but was down by 100 Mcf (a 20% decrease) from 2023.
Average Prices Received: The prices ALTEX received for its production saw some notable shifts:
Average Oil Price:
- 2025: $56.33 per barrel
- 2024: $73.67 per barrel
- 2023: $69.76 per barrel
- Insight: The average oil price received in 2025 dropped by about 23.5% ($17.34 per barrel) compared to 2024.
Average Gas Price:
- 2025: $2.79 per Mcf
- 2024: $2.22 per Mcf
- 2023: $5.27 per Mcf
- Insight: Gas prices increased by about 25.7% ($0.57 per Mcf) from 2024. However, they are still lower than the prices seen in 2023.
Production Costs: ALTEX reported $0.00 for average production costs per equivalent barrel for all three years (2023, 2024, and 2025). This is consistent with their non-working interests, where operators handle direct costs.
Stock and Shareholder Information
- Trading: ALTEX's common stock trades on the OTC Pink Limited Market under the symbol ALTX.
- Shareholders: As of November 28, 2025, there were about 3,400 individual shareholders.
- Dividends: The company did not pay any dividends to shareholders in the last two fiscal years.
- Share Buybacks: In September 2025, ALTEX bought back 41,880 of its own shares at an average price of $0.29 per share.
- Shares Outstanding: As of November 28, 2025, there were 11,187,640 shares of common stock outstanding.
- Market Value: The market value of common stock held by non-affiliates was approximately $2.959 million.
Risks and Challenges
- Reliance on Operators: Since ALTEX doesn't operate its properties, it's entirely dependent on the information and performance of the third-party operators. This means they don't have direct control over production or costs, and they must rely on the accuracy of information provided by others.
- Market Prices: Fluctuations in oil and gas prices can significantly impact their revenue and overall financial performance.
- Cybersecurity: The company highlighted that while they use standard defenses, they don't have formal processes to identify cybersecurity risks from third-party service providers. Their president, who handles cybersecurity, doesn't have formal training in this area. A successful cyberattack could lead to delays in SEC filings or financial losses from attacks on bank accounts.
Key Takeaways
- ALTEX operates as a holding company with non-working interests in oil and gas properties, relying on third-party operators.
- Oil and gas production remained stable from 2024 to 2025 but decreased compared to 2023 levels.
- Average oil prices received dropped significantly in 2025, while gas prices increased from 2024 but remained below 2023 levels.
- The company reported $0.00 in production costs, consistent with its non-working interest model.
- No dividends were paid in the last two fiscal years, but the company executed a share buyback in September 2025.
- Key risks include dependence on operators, volatility in market prices, and potential cybersecurity vulnerabilities.
Risk Factors
- Reliance on Operators: ALTEX is entirely dependent on the information and performance of third-party operators, lacking direct control over production or costs.
- Market Prices: Fluctuations in oil and gas prices can significantly impact revenue and financial performance.
- Cybersecurity: The company lacks formal processes for identifying third-party cybersecurity risks, and its president, who handles cybersecurity, lacks formal training, posing a risk of financial losses or filing delays.
Why This Matters
This 10-K filing is crucial for investors as it details ALTEX INDUSTRIES INC's unique business model and its inherent risks. As a holding company with only non-working interests, ALTEX's financial health is entirely dependent on the performance and reporting of third-party operators, over whom it has no direct control. The reported $0.00 production costs reflect this hands-off approach, meaning investors must focus solely on revenue generation from commodity sales, rather than operational efficiency. This model presents a higher degree of reliance and potential information asymmetry compared to direct operators.
The report highlights significant volatility in commodity prices, with average oil prices dropping by 23.5% in 2025, while gas prices saw a 25.7% increase from 2024. These fluctuations directly impact ALTEX's revenue stream, making the company highly sensitive to market conditions. While production remained stable year-over-year, the decline from 2023 levels suggests a lack of growth or potential depletion in their existing interests. The share buyback, though modest, signals management's intent to return value to shareholders, but its impact on overall shareholder value needs to be assessed against the broader financial performance.
Furthermore, the identified risks are critical for investor consideration. The fundamental reliance on operators means ALTEX cannot directly influence production or cost efficiencies. The emerging cybersecurity risk, particularly the lack of formal processes and specialized expertise within the company, introduces a new layer of vulnerability that could impact financial reporting or lead to direct financial losses. Investors should weigh these operational and systemic risks against the company's revenue potential and capital allocation decisions.
What Usually Happens Next
Following this annual 10-K filing, investors should closely monitor ALTEX INDUSTRIES INC's subsequent quarterly reports (10-Qs) for the fiscal year 2026. The Q1 2026 filing will provide the first update on production volumes, average prices received, and any changes in reserves or operational status of their non-working interests since the September 30, 2025, year-end. These quarterly updates will be essential for tracking the company's ongoing performance and assessing the impact of continued market price fluctuations.
Beyond financial reports, investors should pay attention to broader market trends in crude oil and natural gas prices, as these are the primary drivers of ALTEX's revenue. Any announcements from the operators of the Glo Field regarding drilling activity, production enhancements, or reserve reassessments would also be significant. Given ALTEX's non-working interest model, news from their operating partners will often precede or inform ALTEX's own financial disclosures.
Finally, investors should watch for any strategic moves by ALTEX management. This could include the acquisition of new non-working interests to expand their portfolio, potential divestitures, or changes in their capital allocation strategy, such as further share buybacks or the initiation of dividends if financial performance improves. How the company addresses the highlighted cybersecurity risks, perhaps by implementing more robust protocols or bringing in specialized expertise, will also be a key indicator of management's proactive risk management.
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Document Information
SEC Filing
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December 23, 2025 at 03:48 AM
This AI-generated analysis is for informational purposes only and does not constitute financial or investment advice. Always consult with qualified professionals and conduct your own research before making investment decisions.